Traverse City Record-Eagle

Business

September 21, 2012

CAW reaches deal with GM

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TORONTO (AP) — The Canadian Auto Workers union said late Thursday it has reached a tentative deal with General Motors, but said they are still in talks with Chrysler.

CAW President Ken Lewenza called it a difficult few days but said GM ultimately agreed to the pattern of a deal that the union reached with Ford earlier this week.

The union said earlier Thursday it could serve GM with a 24-hour strike notice after saying GM failed to meet the pattern of the Ford deal.

The union decided to keep working past a midnight Monday strike deadline after reaching a deal with Ford and extending its contracts with GM and Chrysler.

Workers stayed on the job as talks continued, but the union warned it could go on strike after giving GM and Chrysler 24 hours' notice. They wanted the Ford contract to serve as a template for the other two companies.

Like the Ford deal the GM agreement cuts wages for new hires and freezes pay for current workers. But it also gives them lump-sum payments to cover inflation and for ratifying the deal.

Canadian Ford auto workers will vote this weekend on the tentative agreement and the union said results of the vote will be released on Sunday night. There was no immediate word when GM workers would vote on their deal.

The auto companies say Canada is the most expensive place in the world to make cars and trucks, and they could move production south if the CAW doesn't cut costs. The CAW represents about 21,000 auto workers in Canada and about 16 percent of auto production in North America.

GM and Chrysler make popular models in Canada that would soon be in short supply if a strike occurred. CAW workers also make key engine parts and other components for U.S.-built cars. In Canada, GM makes the Chevrolet Camaro, Impala and Equinox, along with the Buick Regal, Cadillac XTS and GMC Terrain. Chrysler makes minivans and the Dodge Challenger and Charger, Chrysler 300, and Ram Cargo Van in Canada.

The federal Canadian and Ontario province governments worked in tandem with the U.S. government on auto bailouts in 2009 to maintain Canada's share of North American auto production.

GM and Chrysler make popular models in Canada that would soon be in short supply if there's a strike. CAW workers also make key engine parts and other components for U.S.-built cars.

Industry analysts say a strike would be felt in U.S. factories in a week or less, and dealers could quickly run short of some models, largely because they haven't built up stocks due to higher demand for cars and trucks in the U.S. In Canada, GM makes the Chevrolet Camaro, Impala and Equinox, along with the Buick Regal, Cadillac XTS and GMC Terrain. Chrysler makes minivans and the Dodge Challenger and Charger, Chrysler 300, and Ram Cargo Van in Canada.

The federal Canadian and Ontario province governments worked in tandem with the U.S. government on auto bailouts in 2009 to maintain Canada's share of North American auto production.

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